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Fed Involves Massachusetts Institute of Technology in Digital Currency Research

Federal Reserve Board member Lael Brainard at a conference on Thursday announced the agency’s collaboration with the Massachusetts Institute of Technology to research and test digital currency, Business Insider writes.

Through this collaboration, the Fed aims to gain a deeper understanding of digital currencies, Brainard said. The possibility of issuing a digital equivalent of the American dollar will also be considered. Brainard stressed that the Fed is not yet ready to introduce the digital dollar, since this is a “significant political process” that will begin with the decision to create the instrument itself. There is no such solution yet, and the current research activity is referred to as a “hypothetical” coin for use by the central bank.

However, the Fed intends to study digital currencies and their possible impact on the global financial system.

In February, Brainard talked about the Fed’s activities in this direction.

In June, Fed Chairman Jerome Powell spoke on the digital dollar:

Alex Zask

EX Pi

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